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Purpose

This paper aims to examine the export‐led growth hypothesis for Fiji and Papua New Guinea (PNG).

Design/methodology/approach

The paper investigates the export‐led growth hypothesis for Fiji and PNG who have been facing dismal economic growth performances over the last couple of decades.

Findings

Findings of the study suggest that for Fiji there is evidence of export‐led growth in the long‐run, while for PNG there is evidence of export‐led growth in the short‐run.

Originality/value

The findings of this paper have important messages for policy makers given that export sectors in both countries investigated are underdeveloped due mainly to a sustained period of political instability.

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